Political Context Conditions: The Role of Government in East Asian Startup Ecosystems

Ying Cheng (), Adam Cross (), Martin Hemmert (), Agata Kapturkiewicz (), Masahiro Kotosaka () and Franz Waldenberger ()
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Ying Cheng: Chongqing University, School of Economics and Business Administration
Adam Cross: Xi’an Jiaotong-Liverpool University
Martin Hemmert: Korea University, School of Business
Agata Kapturkiewicz: Sophia University
Masahiro Kotosaka: Keio University, Faculty of Policy Management
Franz Waldenberger: German Institute for Japanese Studies

Chapter 9 in Unleashing Innovation the East Asian Way, 2026, pp 149-169 from Springer

Abstract: Abstract This chapter analyses government support policies as an important contextual factor for startup ecosystem development in East Asia. Historically, policies have been crafted to address specific national conditions: for example, Japan’s rigid institutional boundaries and aging society, Korea’s chaebol-dominated industrial structure, and China’s reliance on state-led technology transfers. While differing in tools and emphasis, governments have implemented comprehensive measures to foster startup ecosystems, including regulatory sandboxes in Japan, hybrid venture capital programmes like Korea’s Tech Incubator Program for Startups, and China’s mass entrepreneurship campaigns. These interventions represent either a continuation (China) or a revival (Japan and Korea) of developmental state policies. As a consequence, entrepreneurship has become firmly integrated into the broader economic strategies of the three countries.

Keywords: Government support; Startup support measures; Policy rationale (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-981-95-6513-9_9

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DOI: 10.1007/978-981-95-6513-9_9

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